Wells Fargo analyst Matthew Akers says early details on the U.S. government’s fiscal 2026 budget request imply Department of Defense spending above expectations and higher than what is currently priced into the stocks. Bloomberg reports the Trump administration will release a “skinny” version of its fiscal 2026 defense budget today, the analyst tells investors in a research note. Wells notes the Department of Defense’s top line is clarified at $961B, a 13% year-over-year increase, although this includes some reconciliation bill funds. Assuming $50B of reconciliation included would imply 7% growth and up 4% versus the fiscal 2026 level assumed in last year’s long-term budget outlook the firm adds. “The top-line number is likely a big win for defense stocks today,” contends Wells. Publicly traded companies in the defense space include BAE Systems (BAESY), Boeing (BA), General Dynamics (GD), HII (HII), L3Harris Technologies (LHX), Lockheed Martin (LMT), Northrop Grumman (NOC) and RTX (RTX).
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on BA:
- ‘Place…Those Orders Elsewhere’ Boeing Stock (NYSE:BA) Notches Up as Ryanair Threatens to Cancel Orders over Tariffs
- U.S. Army plans overhaul, increase use of drones, WSJ reports
- Still Waiting: Boeing Stock (NYSE:BA) Slips as Boeing Deliveries Hold Up Flydubai
- ‘Load Up,’ Says Douglas Harned About Boeing Stock
- “We’ll Happily Take Them All”: Boeing Stock (NYSE:BA) Gains as Another Buyer for the Chinese Planes Emerges